How to apply for unsecured personal loans? A guide

Unsecured personal loans are just right for you when you need emergency funding but do not want to put an asset on the line as collateral. You might need money for anything – be it a medical situation, a grand wedding, an international trip or your child’s education. Whatever it might be, unsecured personal loans can help you out. However, you need to know how to apply for one. Luckily, this article covers it all, whether you are tech-savvy and want to take the online route or you wish to stick to the traditional offline route.

What is an Unsecured Personal Loan?

As the name implies, an unsecured personal loan does not require any kind of collateral or security and is available with a bare minimum of paperwork. You can apply for unsecured personal loans to meet any valid financial need. Like other loan products, you must repay it in line with the financial institution’s agreed-upon terms.

Now that you have a good understanding of what an unsecured personal loan is, it’s time to discuss how to apply for one.

How to Apply for Unsecured Personal Loans?

If you are looking to apply for a personal loan, any financial institution usually provides two options to you. You can either apply offline by going to a branch of your selected lending institution or can apply online through the lending institution’s website. Offline, you get better assistance, whereas offline, you get better comparison through loan aggregator platforms. To learn more about these two application processes, go through the below pointers.

How to Apply for Unsecured Personal Loans Offline? 

Gone are the days when you had to queue for hours to submit an unsecured personal loan application. The time it takes to have a loan approved when applying offline has reduced significantly due to the adoption of new technologies. To know more about the offline application process, go through the steps below.

  • Visit your preferred lending institution’s nearest branch or outlet.
  • Get in touch with the branch’s executive and inform them of your intention of applying for a loan.
  • Fill in the offline application form and submit the hard copy of the relevant documents.
  • The lending institution’s executive will assess your details and documents.
  • Depending upon your documents, the lender will make a personalised offer to you.
  • Once you confirm the offer, you need to sign the loan agreement.
  • Post acceptance, the lender will disburse the amount to your account shortly.

How to Apply for Unsecured Personal Loans Online? 

During a financial emergency, time is the most valuable aspect, and you cannot afford to waste it. Therefore, opting for an online unsecured personal loan is a wise decision. To initiate the online application process, follow the steps below.

  • Visit the website of the lender of your choice.
  • Fill in the required fields and submit the necessary documents.
  • Enter the personal loan amount along with the repayment tenure.
  • The lender will provide you with a reference number if your information matches their qualifying conditions. Save the reference number for future purposes.
  • The financial institution’s representatives will get in touch with you for more information.
  • After your application is verified, you will get a personalised loan offer with the personal loan amount and interest rate.
  • Once you agree upon the loan terms and conditions, the lender will disburse the funds to your account.

When to Apply for Unsecured Personal Loans? 

As mentioned before, a personal loan can be your saviour during difficult circumstances, or it can help you fulfil a long-cherished wish. Here are some of the most common scenarios where you might consider taking a personal loan.

  • Debt Consolidation: 

If you have high-interest loans and are having trouble paying them off, an unsecured personal loan could be a good choice for you. You can pay off all your high-interest debts at once by taking out this loan. In this manner, you not only manage your finances, but you also help yourself by saving your creditworthiness.

  • Wedding Expenses:

If you are planning a wedding, you should be aware of the high costs associated with jewellery, banquets, decoration and so on. All these costs are large enough to impact your budget if you try to use only your salary to fund them. Hence, taking a personal loan to manage wedding expenses is a wise decision.

  • Medical Condition:

Medical costs are constantly rising, whether you need a single strip of some special medicine or long-term hospital treatment. in such cases, applying for an unsecured personal loan makes sense. And this way, you won’t have to compromise on the quality of your treatment.

  • Children Education:

If you are planning to send your child abroad or to a reputed institution in India for higher education, you must be familiar with the high fees of courses such as MBA, MBBS, B. Tech, and so on. An unsecured personal loan can assist you financially in such a scenario.

To Conclude

Applying for an unsecured personal loan has become easier than ever. Plus, with so many financial institutions offering it, the terms are affordable and attractive too. So, whether you apply online or offline, if you satisfy the qualifying criteria and have all the necessary documentation in place, the lender will approve your personal loan application immediately.

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